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What Is Government Failure?

What Is Government Failure?

Government failure occurs when government intervention creates a net welfare loss, leaving resources allocated less efficiently overall than they would have been without the intervention. Introducing a new distortion or cost is not sufficient by itself: its additional welfare costs must outweigh the welfare gains from correcting the original market failure.

1.8.10 Government failure Lesson

  1. A Level
  2. /Economics
  3. /1.8.10 Government failure

Step-by-step lessons on AQA A Level Economics 1.8.10 Government failure. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.

Lessons